Professional Documents
Culture Documents
Finanace - Assignment Question
Finanace - Assignment Question
Finanace - Assignment Question
Assignment Question (please complete both tasks) 500 to 750 words per task
Task 3: How Nike can adjust both its variable and fixed costs and illustrate importance of credit
control?
Nike
Business Summary
NIKE, Inc. designs, develops, and markets footwear, apparel, equipment, and accessory products for men,
women, and children worldwide. The company offers footwear in the categories of running, training,
basketball, soccer, sport-inspired casual shoes, and kids’ shoes. It also provides footwear for aquatic
activities, baseball, cheerleading, football, golf, lacrosse, outdoor activities, skateboarding, tennis,
volleyball, walking, wrestling, and other athletic and recreational uses. In addition, the company sells
sports apparel and accessories, sports-inspired lifestyle apparel, and athletic bags and accessory items, as
well as apparel with licensed college and professional team and league logos. Further, it offers
performance equipment, including bags, socks, sport balls, eyewear, timepieces, electronic devices, bats,
gloves, protective equipment, golf clubs, and other equipment designed for sports activities under the
NIKE brand name. The company sells its products primarily through its retail stores and e-commerce,
retail accounts, independent distributors, franchisees, and licensees. As of May 31, 2010, it operated 346
retail stores in the United States and 343 retail stores internationally. The company was founded in 1964
and is headquartered in Beaverton, Oregon.
Financial Highlights
Profitability
Profit Margin (ttm): 10.26%
Operating Margin (ttm): 13.45%
Management Effectiveness
Return on Assets (ttm): 11.98%
Return on Equity (ttm): 21.22%
Income Statement
Revenue (ttm): 19.83B
Revenue Per Share (ttm): 41.17
Qtrly Revenue Growth (yoy): 9.90%
Gross Profit (ttm): 8.80B
EBITDA (ttm): 3.06B
Net Income Avl to Common (ttm): 2.03B
Diluted EPS (ttm): 4.14
Qtrly Earnings Growth (yoy): 21.90%
Balance Sheet
Total Cash (mrq): 4.79B
Total Cash Per Share (mrq): 10.01
Total Debt (mrq): 598.00M
Total Debt/Equity (mrq): 6.01
Current Ratio (mrq): 3.36
Book Value Per Share (mrq): 20.79
Cash Flow Statement
Period Ending May 31, 2010 May 31, 2009 May 31, 2008
Operating Expenses
Research Development - - -
Others - - -
Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Period Ending
Currency in USD.